Stocks Drop on Worries Over Economy; Dollar Falls: Markets Wrap

Stocks in Asia retreated after an unexpected rise in American jobless claims rekindled concern a recovery in the world‘s largest economy has stalled. The dollar extended this week’s slide.

The first uptick in jobless claims since March comes as Congress negotiates a new relief package for millions of Americans who are set to lose enhanced benefits at the end of the month. Other worrying signs of the U.S. economy slowing added to concern that the growth in some areas will peter out.

“You have people taking the opportunity to get a little bit off the table,” Victoria Fernandez, chief market strategist at Crossmark Global Investments Inc., said on Bloomberg TV. “With initial claims moving higher this week, we need to keep an eye on the reopening plans across the country.”

Japan remains closed for a holiday Friday.

Former New York Fed President William Dudley discusses the state of the U.S. economy and need for further stimulus for citizens and businesses.

Source: Bloomberg

These are the main moves in markets:

Stocks

• S&P 500 Index futures rose 0.3% as of 9:22 a.m. in Hong Kong. The index fell 1.2% on Thursday.

• Shanghai Composite slid 0.4%.

• South Koreas Kospi was little changed.

• Hong Kongs Hang Seng Index declined 0.9%.

• Australias S&P/ASX 200 Index slipped 1%.

• Euro Stoxx 50 futures fell 0.6%.

Currencies

• The yen was at 106.58 per dollar, up 0.3%.

• The offshore yuan rose 0.1% to 7.0047 per dollar.

• The euro bought $1.1615, up 0.2%.

• The Aussie climbed 0.3% to 71.17 U.S. cents.

Bonds

• The yield on 10-year Treasuries fell two basis points to 0.58% on Thursday. Futures were little changed ahead of the London open for cash bonds.

• Australias 10-year yield rose one basis point to 0.87%.

Commodities

• West Texas Intermediate crude oil added 0.3% to $41.20 a barrel.

• Gold was at $1,885.10 an ounce, down 0.1%.

— With assistance by Vildana Hajric, Claire Ballentine, and Sophie Caronello